Legal Question in Business Law in Virginia

Re: Website

Your question is not quite clear enough (most questions need some more details). At times what you describe is that you simply loaned her money, and are a lender. But you also suggest that you are partners. It makes a difference in answering your question. As a business partner, you have a "fiduciary duty" -- an obligation of good faith -- to her, and she also does to you. If you do anything to harm her business, you would be breaching an obligation to her. Of course she is also breaching an obligation to you if she does not pay you back money that she owes you. Even if you are not partners, but only a lender, if you do anything to harm her busienss, this can confuse the entire issue. That is, even if you did not do anything wrong, this can be misrepresented and used to make you look bad before a judge, etc.

So, I think you should both work to maximize and sustain the viability of the company, but that does not mean you being cheated of money she owes you.

The big question that is missing is exactly what your original agreement was and is. If you are true partners, both of you would be expected to contribute financially to the business, and you would share in profits or losses. That is the legal definition of business partners.

So if she put in money into the business, and you also put in the money for the website and $3000, then you are just contributing equally to the business. She might not owe you anything. If both partners have contributed money, and both partners share in the results, then the money you put in is an investment. She does not owe you the money back, but only a share of the profits.

However, if the money was a loan, then you would not have a share of the profits and losses. You should get paid back your loan. But then you would not be a partner and would not divide the profits with her.

If you only loaned her the money for the website, I think it is legal for you to not transfer the website into her name until she pays you back for it.

If she refuses to pay you, I think that you could be entitled to get your money back by changing the website and keeping some or all of the money. But the law does not look favorably on "self help" like this. At a minimum, you would need to give her plenty of opportunity to pay or make arrangements to pay. You would have to make it clear that she is refusing to pay you and that youra ctions are NECESSARY to protec tth emoney due to you. If you act too quickly, or rush through various steps, it will look like you are cheating her and harming her business. Make very clear to her what you are owed, and give her plenty of chance to make arrangements to pay you back. If she agrees to pay you back eventually, I think you would NOT be legally justified in disrupting her business website.